The company has set the price band in the range of Rs 626 to Rs 627. Bids can be made for a minimum of 23 equity shares and in multiples of 23 shares thereafter.
The offer comprises fresh issue of shares worth Rs 60 crore and an offer for sale of 90,15,000 shares comprising 58,50,000 shares by Sadashiv Shetty, 22,72,038 shares by Raghuram Shetty, 8,12,962 equity shares by Sams industries limited, 40,000 equity shares by Babu Shetty and 40,000 shares by Vittala Bhandary.
Quota reserved for QIBs is 50 per cent, while the same for HNI investors is 15 per cent and 35 per cent for retail investors.
Based on basic EPS for the year ended March 31, 2020, the shares are being issued at a PE of 25 times, which is at discount to the industry average of 61. The PE multiple of the offer is lower than the cheapest listed peer — Bharat Rasayan — available at 27 PE. Based on the Weighted Average EPS, the issue is priced at 30 PE.
The company counts Rallis India, Sumitomo Chemical, Bharat Rasayan and Punjab Chemicals and Crop Protection among its peers.
Heranba Industries is a crop protection chemical manufacturer, exporter and marketing company based out of Vapi, Gujarat, with corporate and administration offices in Mumbai. It manufactures intermediates, technicals and formulations and is the producer of synthetic pyrethroids like cypermethrin, alphacypermethrin, deltamethrin, permethrin, lambda cyhalothrin, etc.
The company plans to use the proceeds from the share sale to fund working capital requirements and for general corporate purposes.
The book running lead managers to the issue are Emkay Global and Batlivala & Karani Securities while the registrar is Bigshare Services. The two merchant bankers associated with the issue have handled just one public issue in the past three years.
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